Hi,
Big fan of the forum. Haven't posted in a while.
My wife and I are currently in a very fortunate situation of trying to figure out what to do with our extra money.
Our situation:
- Wife and I are in our late twenties. We have $200k invested so far.
- Income was around $300k in 2016. Looks like it will be slightly more this year.
- We already max out our 401k accounts, and I run my own s-corp so contribute an extra 15k to profit sharing. In total, we are investing $51k per year into our tax-deductible accounts.
- We purchased a home in southern california last August (boooo - high prices!). We started with a $440k loan. It's down to $416k currently. Interest rate is 3.75%
My question is
What do you recommend us doing with extra savings?
We're already maxing out retirement accounts. We're making extra principle payments most months. We have an emergency account.
Do we plow through our mortgage and put all our extra towards that?
Do we invest some into our regular Vanguard index fund account?
Do we do both? And if so, what is the split?
We earn too much to contribute to a Roth IRA. But is there are way with IRA conversions that it would make sense to contribute to a Traditional, then convert to a Roth even though we're maxing out our 401k accounts? Is that even possible?
Something else?
Thanks in advance!